NEW YORK, July 29, 2021--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of those who acquired James River Group Holdings, Ltd. ("James River" or the "Company") (NASDAQ: JRVR) common stock from August 1, 2019 through May 5, 2021, inclusive (the "Class Period"). Investors have until September 7, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
James River is a holding company that owns and operates a group of specialty insurance and reinsurance companies. Its largest segment, Excess and Surplus ("E&S") Lines insurance, focuses on insureds that generally cannot purchase insurance from standard lines insurers due to perceived risks related to their businesses. Included in this E&S Lines segment is James River’s Commercial Auto Division. In 2014, James River ramped up its Commercial Auto Division by underwriting a new type of insurance policy that covered Rasier LLC ("Rasier"), a subsidiary of the ride-sharing company, Uber Technologies, Inc. (together with Rasier, "Uber").
On July 31, 2019, James River issued a press release that assured investors that James River was adequately reserved against its Uber policies and that the Defendants were "comfortable" with James River’s E&S Lines reserves.
On October 8, 2019, after the market closed, James River disclosed it had delivered a notice of early cancellation of all policies issued to its largest customer, Rasier. On this news, James River’s stock price declined by $11.06 per share, or approximately 22.6% from $48.94 per share to close at $37.88 per share on October 9, 2019.
On May 5, 2021, the Company announced its first quarter 2021 financial results, reporting $170 million of "unfavorable development in Commercial Auto, primarily driven by a previously canceled account that has been in runoff since 2019." On this news, James River’s stock price declined by $12.27 per share, or approximately 26.39%, from $46.50 per share to close at $34.23 per share on May 6, 2021.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) James River had not adequately reserved for its Uber policies; (2) James River was using an incorrect methodology for setting reserves that materially understated its true exposure to Uber claims; (3) as a result, the Company was forced to increase its unfavorable reserves in subsequent quarters, even after cancelling the Uber policies; and (4) as a result of the foregoing, Defendants’ statements about James River’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired James River common stock, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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